Whipsaw

People don't use stops for three reasons: ignorance, wanting to hang on to hope, and the trouble with whipsaws.
A whipsaw means that you buy a stock, set a stop underneath, the stock declines and hits it, you exit with a loss, only to see your stock reverse and rally just as you originally expected. After several whipsaws many folks give up using stops. But trading without stops is a receipe for a disater because sooner or later, one of your 'stopless' stocks will get caught in a major downdraft and deliver a 'shark bite' to your account.

                                                                  -------Dr. Alexander Elder

There are no certainties in the markets, only probabilities

2018/11/16

There are no certainties in the markets, only probabilities. Even a reliable pattern, may fail occasionally.

Market forecasting is a matter of probability, the risk of being wrong is always present.

Many people make the mistake of thinking that market is truly predictable. Nonsense, trading in the markets is an odds game, and the object is to always keep the odds in your favor.

The way to build wealth is to preserve capital, make consistent profits, and wait for the right opportunity to make extraordinary gains.

High-flying stocks

2018/10/4

Stocks with no assets or earnings can fly on hot air. A value trader who feels he is missing those spectacular moves has a choice. 1. He can stick to his method, soberly saying, “Can’t catch them all”. 2. Or he may decide, “When living with the wolves, howl like a wolf” and start buying upside breakouts. If you do that, the only asset separating you from the manic crowd is your risk control – your stops and money management.

   -----Dr. Alexander Elder

Making your strategic decision-bull or bear on a long-term chart, then switch to a shorter-term chart to buy and sell

2018/9/29

A perfect indicator doesn’t exit. Markets are complex, you cannot win using a single tool.
When a rising slow moving average identifies an uptrend, then buy pullbacks into the value zone.

Stock Market Wizards

If you read about many of the great traders in history, you’ll find that a very large percentage of them blew out (lost all their money) at least once, and some of them blew out two or three times in their career. Add to this the fact that only about 5% of commodity traders make money, and you have to wonder. “What’s going on here”.

There are many reasons why people lose money in the market, but one huge and easily avoided mistake is putting too much capital at risk in a single position betting it all. The mistake arises because people don’t set forth a business philosophy for themselves before making a trade in the markets.                                                                                                                                                           Many people make the mistake of thinking that market behavior is truly predictable. Nonsense, trading in the market is an odds game, and the object is to always keep the odds in your favor.

                                                                                            

                                                                                                            ---Victor Sperandeo

 

 

Mark Weinstein

How much were you losing each day ?

 Before that trade, I had nearly $1.5 million in my trading account. So I was losing nearly 10 percent of my equity level prior to the trade each. I was devastated. I felt like I was wounded in a trench and watching myself bleed to death. The market went limit-down five days in a row, and I lost over $600,000. On the fifth day, I remember sitting in a park holding hands with a girl I had picked up, literally crying on her lap. I was practically in a psychotic state. I thought about getting out of the business altogether. I started to think that what everybody was telling me was true-maybe it was luck that I had made money all those years. I worried that If I continued trading, I could wind up losing it all, and being forced to go back some job I didn’t like.
------Mark Weinstein ( The man who turned the $100,000 into over $900,000 in three months US options trading contest)

Wall Street Master

I always combine technical, statistical, and fundamental economic factors to assess the risk of any speculative position. Only when all three factors point in the same direction do I get involved in any significant way. Moreover, through experience, I have learned how crucial it is to be aware of existing or potential government intervention in the marketplace.

 

By Victor Sperandeo